Looking For a High-Yielding Safe Haven?

Written by Jason Simpkins
Posted January 3, 2020

For the past decade, stocks have generally gone up.

We haven’t had many major pullbacks or a proper bear market.

But some cracks are starting to show.

Global growth has been stagnant for a while, and now the U.S. economy is losing steam, too.

Unfortunately, there aren’t many places for investors to hide.

That’s because the Fed’s way of dealing with these issues has been to keep interest rates at a rock-bottom level. As a result, savings rates at banks are pathetically low.

Simply put, savers get screwed.

You can always buy gold (and you should), but gold doesn’t pay interest.

Well, I have a solution to this conundrum.

I’ve found an income play that’s as secure and dependable as Treasuries, but offers three-times the yield.

This stock is a Real Estate Investment Trust (REIT), which means it owns and operates income-producing real estate.

It’s a landlord.

But not just any landlord…

Its sole tenant is the U.S. government.

Yes, this company leases offices exclusively to government agencies.

That makes its revenue ironclad. It’s effectively backed by the full faith and credit of the U.S. government.

The Government Services Administration (GSA) has never defaulted on a lease in its 70-year history. And because this company does not lease to state agencies, there are no risks related to appropriations or state government defaults.

As a result, shareholders enjoy a steady platform of strong recurring cashflows and generous risk-adjusted returns through the stock’s 4.5% dividend yield.

Show me another way to get 4.5% from a bank or government entity right now.

You can’t. Not unless you’re investing in junk bonds.

The average bank savings rate is currently 0.09%. That’s not even a tenth of a percent. That’s $0.90 interest on every $1,000 saved.

By contrast, $1,000 invested in this company gets you a quarterly payout of $45. Granted, that’s a quarterly payout compared to monthly for a savings account. But it’s still substantially more, because again, that 0.9% savings rate still only gets you $2.70 every quarter… compared to $45.

So if you’re wary of a decade-old bear market that’s getting long in the tooth and showing signs of strain as the global economy buckles…

If you’re looking for guaranteed income, but want to do better than the measly offerings of savings accounts and Treasuries…

Indeed, subscribers to my Wealth Warrior investment service have already gotten access to this play and received their first payout on December 27. And that’s on top of the 8% capital gain that’s accrued since my initial recommendation on October 9.

But now I’m making this income play available to everyone in a brand new report.

Keep an eye out for my next email announcing when you can access my report.

Fight on,

Jason Simpkins Signature

Jason Simpkins

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Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of The Wealth Warrior, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

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